Rose Report: Issue 50

Growth CFO: A CEO’s Partner to Long-term Success

By Ted Rose, CEO, Rose Financial Solutions

Your business has grown from a one-person operation to a large team with a growing number of clients. You understand accounting and finance operations and have a clear vision of your goals for the company for the next five years. You are heading down the path to greater success, right? Not necessarily. The road to growth often has unforeseen potholes. As your company expands, you’ll need a sounding board for financial decisions from a seasoned professional. That’s where the role of a Growth Chief Financial Officer (CFO) comes in.

What is a Growth CFO?
Traditionally, a CFO is a company’s financial gatekeeper, assessing past accounting data and financial projections to assist the CEO in understanding the company’s financial situation and what can be done to improve financial performance in the future. However, today’s CFO functions have evolved from financial management to that of a strategic and operational partner to the CEO. From strategy formulation to integrating and managing the processes to meet business goals, a CFO plays an active role at all levels of decision making. Not only do they know the numbers, but they also possess the business acumen and technology expertise to assess financial data and use it to drive operational decision making and strategy. While many business owners focus on short-term profits and losses, a Growth CFO starts their journey with the destination in mind. With a focus on driving performance, a Growth CFO looks towards long-term value creation.

When hiring a Growth CFO, it’s important that the person has expertise in finance and accounting technology, as well as how the two disciplines combine to help a company succeed. Candidates should also be able to effectively interact with you, the board, your employees, banks, and other stakeholders and be knowledgeable about your industry. Because a Growth CFO is a CEO’s valued partner and business counselor, it’s important that the person is someone you trust, respect, and have a good rapport with. The Growth CFO should not be reluctant to bring up business concerns with the CEO, and the CEO should welcome these points of view for the benefit of the company.

When we emerge from the pandemic and begin “business as usual,” the role of a Growth CFO will be more critical than ever. Strong financial leadership is crucial to overcoming organizational issues in these unpredictable times. A full-time in-house Growth CFO isn’t always required, especially in smaller businesses. Working with a part-time contracted professional is also an option. Regular meetings and written contact keep both parties informed and help to establish a long-term partnership.

While most small business CEOs realize the importance of a Growth CFO in reaching their financial goals, many do not have the resources to hire a full-time employee for the position. When a company needs high-level support, fractional financial management is often an excellent solution. At Rose Financial Solutions (RFS), we focus on being your trusted advisor and helping you succeed in your own mission through our Growth CFO solution. Please schedule an introductory call for more information on how our cost-effective and scalable solution can help you reach your business goals in 2022 and beyond.

This content is for information purposes only and should not be considered legal, accounting or tax advice, or a substitute for obtaining such advice specific to your business.